You’ve probably heard a lot about “de minimis” lately. And this is especially true if you’re shipping internationally to people in the US.
If you’re like most business owners, you’re probably wondering what on earth “de minimis” means and why everyone seems so worried about it.
In this post, we’ll explain what the de minimis exemption was, how it became such a big part of online commerce, when it was phased out, and—most importantly—how it’s likely to impact you.
What Was The De Minimis Exemption?
De minimis exemptions allow shipments below a certain value threshold to enter a country without paying duties, taxes, or undergoing formal customs clearance procedures. In the United States, this threshold was set at $800 per shipment in 2015, meaning any package valued at or below this amount could enter duty-free with minimal documentation requirements.
That’s historically a pretty high threshold, with many countries having much lower de minimis values. It was originally set to that level as an administrative convenience. It was intended to avoid the cost of processing low-value imports for cross-border commerce.
The de minimis exception was codified in 19 U.S. Code § 1321(a)(2)(C). Up until very recently, the de minimis threshold was $800. Before being increased in 2015, it used to be $200, until it was changed as part of the U.S. Trade Facilitation and Trade Enforcement Act. And that initial change had a massive impact on how businesses and consumers have handled eCommerce.
De Minimis Shipping Skyrocketed From 2014 To 2024
The number of such shipments grew from 140 million in 2014 to 1.36 billion in 2024, according to a January press release from Customs and Border Protection. That is a tenfold increase over just 10 years.
That breaks out to about 4 million packages every day, which were passing into the US without any customs charges.
Many businesses between 2014 and 2024 set up their supply chains to where they would ship to US consumers from other countries. This could mean anything from dropshipping items straight from manufacturers in China to covering North American fulfillment with a single warehouse in Saskatoon, Canada.
When Did The De Minimis Exemption End?
At the stroke of midnight on August 29, 2025, about 4 million daily packages lost their duty-free status with President Donald Trump’s removal of the de minimis exemption.
On July 30, 2025, President Trump signed an executive order entitled “Suspending Duty-Free De Minimis Treatment for All Countries,” which eliminates de minimis entry (i.e., duty-free entry into the United States of shipments valued at $800 or less) for goods entered for consumption, or withdrawn from warehouse for consumption, on or after 12:01 a.m. eastern daylight time on August 29, 2025.
There were three key events that led up to this:
- The de minimis exemption was removed for China & Hong Kong on May 2, 2025.
- The executive order mentioned above was signed on July 30, 2025.
- Now, as of August 29, 2025, every package requires proper customs processing regardless of value.
The administration cited concerns about drug trafficking and unfair trade advantages as reasons for the change.
How The End of the De Minimis Exemption Is Affecting Businesses
As anticipated, the August 29th deadline created widespread disruption. Postal operators in a growing number of countries, including Austria, Belgium, Denmark, Norway, Sweden, France, Germany, and Japan suspended certain parcel shipments to the US before August 29, 2025, when the de minimis exemption ended.
Many European parcel companies—including DHL, the Royal Mail, and the French and Spanish national post offices—temporarily suspended some shipments to the US, citing new US tariff policies. The reason wasn’t just the tariffs themselves—it was the paperwork and operational changes required.
Removing the de minimis exemption in a short timeframe has caused a lot of process issues on the part of mail carriers. Namely, most commercial packages now require:
- Full customs documentation
- Proper tariff classification (10-digit HTS codes)
- Duty collection and remittance
- Formal entry processing
There are still some exemptions: Letters aren’t subject to tariffs and people can send gifts worth less than $100 to each other. Longstanding exemptions under 19 U.S.C. 1321(a)(2)(A) and (B) will still allow American travelers to bring back up to $200 in personal items and individuals can continue to receive gifts valued at $100 or less duty-free.
According to the latest executive order, businesses may face an $80 per item charge for a country with a tariff rate less than 16%, or costs as high as $160 per item for a country with a tariff rate of between 16% and 25%, and $200 per item for a country with a tariff rate above 25%.
What This Means for Your Business
The removal of the de minimis exemption is going to have a lot of impacts on online sellers. So if you’re running an eCommerce business, here’s what you need to know:
If You’re Importing Products
- Budget for higher costs: Beginning August 29, all products coming into the US will be subject to duties and tariffs based on their origin. Current tariff rates vary widely, from 10% for the United Kingdom to 50% for India, and across a wide range of products.
- Get familiar with HTS codes: Products will now require 10-digit Harmonized Tariff Schedule codes for customs processing.
- Consider bulk shipping: Bulk imports to domestic warehouses will likely be more efficient than individual shipments for many eCommerce brands. That way, you can ship from US warehouses to US customers.
- Plan for delays: The postal carriers are rapidly adjusting to account for how much extra processing it will take to accommodate 4 million packages per day. That means until they find a new normal, customs processing will take longer than it used to.
If You’re Selling Internationally
- Review your shipping policies: You’ll need to decide whether to absorb new costs or pass them to customers.
- Consider domestic fulfillment: Having inventory already in the US avoids these complications entirely.
- Communicate clearly: Make sure your customers understand why shipping costs are going up, and that it is out of your control.
If You’re Dropshipping
Dropshipping models that rely on overseas fulfillment to ship directly to US consumers face the most significant challenges, as both costs and complexity have increased substantially.
For dropshippers, there really is no easy solution since the model is typically based entirely on inexpensive imports. Options for continuing to stay in business include raising prices or finding US suppliers to ship to US consumers.
What You Should Do Right Now
If you’re affected by these changes, here’s a plan you can follow right now to reduce your risk exposure.
- Audit your current shipping: Figure out which products and shipping lanes relied on the old de minimis exemption.
- Calculate the new costs: Run the numbers on what duties and fees will actually cost you.
- Consider US fulfillment: Seriously evaluate whether having inventory stateside makes sense.
- Communicate with customers: Be upfront about any changes to shipping costs or policies.
- Plan for the holidays: Peak season is coming, and the last thing you want is customs delays on Black Friday orders.
The Bottom Line
The removal of the de minimis exemption will affect nearly every business that ships internationally to the US. Your costs are going up, your processes are getting more complex, and many of your shipping options just disappeared.
But here’s the thing: every challenge creates opportunities for businesses that adapt quickly. While your competitors are scrambling to figure out customs forms and duty calculations, you could be offering customers faster, more predictable shipping from domestic inventory.
The businesses that thrive will be the ones that stop trying to optimize around a system that no longer exists. Even if it feels difficult, frustrating, and unfair, you can only benefit from building quickly around this new reality.
Need help shipping in a post-de minimis world? We’ve got US-based fulfillment centers that offer tariff assistance. Get a free quote and see how much simpler (and faster) your shipping could be.
